German bank DekaBank introduces crypto trading for institutional investors: report

DekaBank has launched cryptocurrency trading, custody, and management services exclusively for institutional clients.

Retail investors are explicitly excluded, and the Sparkassen group, to which DekaBank belongs, is still deliberating its approach to private customers in crypto trading, according to Bloomberg .

The bank has obtained a crypto custody license from the European Central Bank and Germany’s financial regulator, BaFin, positioning itself as a secure option for institutional clients.

DekaBank board member Martin K. Müller stated that the organization possesses the necessary experience, required licenses, and a tested, ready-to-use infrastructure.

Crypto trading for other banks

Other banks within the Sparkassen group are also entering the institutional crypto market. For example, LBBW recently announced a partnership with crypto exchange Bitpanda to provide corporate clients with a platform for cryptocurrency custody and trading.

The stance on retail investors remains uncertain. While the sector has previously avoided such offerings, it is currently reassessing its position. 

In contrast, Germany’s cooperative banks, led by DZ Bank, plan to introduce crypto services for all retail customers by summer, Bloomberg reports.

According to DekaBank, institutional investors have the expertise, resources, and infrastructure to manage crypto-related risks professionally. 

The bank sees strategic opportunities for crypto investments, particularly in portfolio diversification.